Systems and methods for assessing operations, risk-adjusted operational efficiency, risk-adjusted operating effectiveness, and risk-adjusted operating leverage of banks and non-banking finance companies

Abstract

Methods for determining risk-adjusted metrics are presented including a risk-adjusted process efficiency score, a risk adjusted process-based, enterprise-operating-model efficiency score, a risk-and-resource-utilization-adjusted, process-based enterprise-operating-model efficiency score, a risk-and-resource-utilization-adjusted, process-based enterprise-operating-model effectiveness score, and a risk-adjusted operating leverage. In addition, a method for assessing non-interest costs of a bank or non-banking finance company utilizing time-driven costs of resources for performance of the processes of the bank or non-banking finance company is presented.

What is claimed as new and desired to be protected is: 
     
         1 . A method for assessing non-interest costs of a bank or non-banking finance company, the method comprising:
 for at least one process of a bank or non-banking finance company:
 identifying a plurality of activities of the process; 
 for each of the activities or group of activities, determining at least one staff, at least one system, at least one non-staff, non-system resource or any combination thereof that is used to perform the activity or group of activities; 
 for each of the activities or group of activities, determining a cost of performance of the activity or group of activities using the determined at least one staff, at least one system, at least one non-staff, non-system resource, or combination thereof that is used to perform the activity or group of activities; 
 determining a cost of performance of the process using the determined costs of performance of the activities and groups of activities; and 
 for a predefined time period in which the process is performed N times, determining a cost of the performance of the process over the predefined time period by multiplying the cost of performance by N. 
   
     
     
         2 . The method of  claim 1 , further comprising, for at least one of the at least one process of the bank or non-banking finance company, determining a resource utilization rate for the process by dividing the time driven cost of the performance of the process over the predefined time period by the actual cost incurred for the process over the predefined time. 
     
     
         3 . The method of  claim 1 , wherein determining the cost of performance of the activity comprises, for each of the at least one staff, at least one system, and at least one non-staff, non-system resource used to perform the activity, obtaining a cost per time unit. 
     
     
         4 . The method of  claim 3 , further comprising, for each of the activities, obtain an number of time units for performance of the activity in a single performance of the process. 
     
     
         5 . The method of  claim 4 , wherein determining the cost of performance of the activity comprises determining the cost of performing the activity by summing the costs per time unit of each of the at least one staff, at least one system, or at least one non-staff, non-system resource used to perform the activity and multiplying the sum by the number of time units used. 
     
     
         6 . The method of  claim 4 , wherein determining the cost of performance of the activity comprises determining the cost of performing the activity by multiplying each of the costs per time unit of the at least one staff, at least one system, and at least one non-staff, non-system resource used to perform the activity by the number of time units used and summing results of all of the multiplications. 
     
     
         7 . A system for assessing non-interest costs of a bank or non-banking finance company, the system comprising:
 at least one memory having instructions stored thereon; and   at least one processor configured to execute the instructions to perform actions, the actions comprising:   for at least one process of a bank or non-banking finance company,
 receiving a plurality of activities of the process, 
 for each of the activities or group of activities, receiving at least one staff, at least one system, at least one non-staff, non-system resource or any combination thereof that is used to perform the activity or group of activities, 
 for each of the activities or group of activities, determining a cost of performance of the activity or group of activities using the determined at least one staff, at least one system, at least one non-staff, non-system resource, or combination thereof that is used to perform the activity or group of activities, 
 determining a cost of performance of the process using the determined costs of performance of the activities and groups of activities, and 
 for a predefined time period in which the process is performed N times, determining a cost of the performance of the process over the predefined time period by multiplying the cost of performance by N. 
   
     
     
         8 . A non-transitory computer readable medium having instructions stored thereon, wherein the instructions, when executed by at least one processor, are configured to perform actions for assessing non-interest costs of a bank or non-banking finance company, the actions comprising the method of  claim 1 . 
     
     
         9 . A method for determining at least one risk-adjusted performance measure of operation or efficiency of a bank or non-banking finance company, the method comprising:
 for each of a plurality of processes of the bank or non-banking finance company:
 determining, for the process, an assessment score for each of performance, risk management, and non-interest cost management; and 
 determining a risk-adjusted process efficiency score as a composite of the assessment scores. 
   
     
     
         10 . The method of  claim 9 , further comprising dividing operation of the bank or non-banking finance company into the plurality of processes of the bank or non-banking finance company. 
     
     
         11 . The method of  claim 10 , further comprising, for at least one of the processes of the bank or non-banking finance company, dividing the process into a plurality of activities. 
     
     
         12 . The method of  claim 9 , further comprising
 identifying at least one of the processes of the financial information for efficiency improvement using the risk-adjusted process efficiency score for the processes of the financial information;   identifying at least one action to improve the efficiency of the at least one of the processes of the bank or non-banking finance company; and   perform at least one of the at least one action resulting in improvement of the efficiency of the at least one of the processes of the bank or non-banking finance company.   
     
     
         13 . The method of  claim 9 , further comprising determining a risk-adjusted process-based enterprise-operating-model efficiency score as a composite of the risk-adjusted process efficiency scores of the each of the processes of the plurality of processes of the bank or non-banking finance company. 
     
     
         14 . The method of  claim 13 , further comprising
 determining a resource utilization rate;   determining a shortfall score based on a difference between a target rate and the resource utilization rate;   determining an adjusted resource utilization rate as a product of the resource utilization rate and the shortfall score; and   determining a risk-and-resource-utilization-adjusted, process-based enterprise-operating-model efficiency score as a product of the risk-adjusted process-based enterprise-operating-model efficiency score and the adjusted resource utilization rate.   
     
     
         15 . The method of  claim 14 , further comprising
 determining an achievement score for each of at least one goal of the bank or non-banking finance company; and   determining a risk-and-resource-utilization-adjusted, process-based enterprise-operating-model effectiveness score as a product of the risk-and-resource-utilization-adjusted, process-based enterprise-operating-model efficiency score and the achievement score for each of the at least one goal.   
     
     
         16 . The method of  claim 15 , further comprising
 determining an operating leverage value as a percentage growth in revenue minus a percentage growth in operating cost; and   determining a risk-adjusted operating leverage as a product of the risk-and-resource-utilization-adjusted, process-based enterprise-operating-model effectiveness score and the operating leverage value.   
     
     
         17 . A system for determining at least one risk-adjusted measure of operation or efficiency of a bank or non-banking finance company, the system comprising:
 at least one memory have instructions store thereon; and   at least one processor configured to execute the instructions to perform actions, the actions comprising the method of  claim 9 .   
     
     
         18 . A system for determining at least one risk-adjusted measure of operation or efficiency of a bank or non-banking finance company, the system comprising:
 at least one memory having instructions stored thereon; and   at least one processor configured to execute the instructions to perform actions, the actions comprising the method of claim  16 .   
     
     
         19 . A non-transitory computer readable medium having instructions stored thereon, wherein the instructions, when executed by at least one processor, are configured to perform actions for determining at least one risk-adjusted measure of operation or efficiency of a bank or non-banking finance company, the actions comprising the method of  claim 9 . 
     
     
         20 . A non-transitory computer readable medium having instructions stored thereon, wherein the instructions, when executed by at least one processor, are configured to perform actions for determining at least one risk-adjusted measure of operation or efficiency of a bank or non-banking finance company, the actions comprising the method of  claim 16 .